Effect this measure will have on costs and revenues of state government.

The legislation does not impact the agency but would have an impact on the State's General Fund.

This bill would give a corporate tax credit to any railroad in West Virginia whose track is used by a daily commuter railroad service operating in the State. The credit would be equal to the access fees charged to a daily commuter railroad service for the portion of trach used in WV.

Currently this would impact the MARC commuter opertor in the eastern panhandle. The operator of this service is the Maryland Transit Administration and the track used belows to CSX Transportation. CSX Transportation (MTA) would receive a corporate credit in lieu of the payment MTA pays to them for the West Virginia portion of track.

Fiscal Note Detail

Over-all effect

Effect of Proposal

Fiscal Year

2012Increase/Decrease(use"-")

2013Increase/Decrease(use"-")

Fiscal Year(Upon FullImplementation)

1. Estmated Total Cost

0

-716,690

0

Personal Services

0

0

0

Current Expenses

0

0

0

Repairs and Alterations

0

0

0

Assets

0

0

0

Other

0

0

0

2. Estimated Total Revenues

0

0

0

3. Explanation of above estimates (including long-range effect):

The impact under the FY12 contract would be an access fee of $695,830 for 37,250 train miles in West Virginia or approximately $18.68 per train mile.

Based on the premise that the bill will be effect 7-1-12 and with a 3% increase, the impact is estimated to be $716,690 for FY13. Note, however, that this rate, will increase each fiscal year.

Memorandum

If passed, WV needs to have assurance from the Maryland Transit Administration that the access fee they negotiate with CSX Transportation is the same in both Maryland and West Virginia.

This bill would help to assure continued MARC train service and access to WV citizens by helping the operator, MTA, with West Virginia based operating costs.